Bar stool economics

[Heywood]

Also, the economist said most of these rich people don't pay any taxes at all. So the really poor people and the rich guy would pay nothing if we use the bar example.

The economist's claim that most rich people don't pay any taxes at all is false(if he indeed claim it....i don't remember). A little research indicates that rich people pay the lion-share of all taxes.

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Heywood,
I don't think you're giving enough consideration to some of the criticism. Take for instance the obvious criticism that the bar stool economics lesson only takes into account income tax rates.

Income taxes make up about 41% of total tax revenue. Excise, payroll, and corporate income taxes are embedded in the price of all goods and services and are paid by everyone. The fact that this was ignored in an attempt to portray the bottom 40% of wage earners as getting a free ride with no tax liability is simply disingenuous.

You can't have it both ways Cato. You can't claim the poor and middle class bear the cost of taxes that are embedded in the price of all goods and services paid by everyone....then claim that a cut in those taxes only benefits the rich.

For what its worth....I would be perfectly content with the bottom third....maybe even the bottom half not paying any tax at all.